LOS ANGELES, March 20, 2013 /PRNewswire/ -- Cathay General
Bancorp (the "Company," NASDAQ: CATY), the holding company for
Cathay Bank, announced today that it has paid the U.S. Treasury
$129 million, plus accrued and unpaid
dividends, in connection with the redemption of fifty percent (50%)
of its outstanding Series B preferred stock issued under the U.S.
Treasury's TARP Capital Purchase Program.
Dunson K. Cheng, Chairman of the
Board, President, and Chief Executive Officer of the Company
stated, "We are very pleased to make this announcement. We believe
that regulatory approval to repay one-half of our TARP obligation
demonstrates the financial strength of our banking franchise.
We are also pleased that we had the retained earnings and liquidity
to be able to repay this portion of our TARP obligation. We
will continue to work towards redeeming the remaining Series B
preferred stock as soon as possible."
Since receiving the TARP investment, the Company has paid the
U.S. Treasury approximately $54.7
million in dividends on its Series B preferred stock through
February 15, 2013. On an ongoing
basis, the redemption of one-half of the outstanding Series B
preferred stock eliminates our obligation for quarterly dividends
by approximately $1.6 million.
At December 31, 2012, the Company
exceeded all regulatory capital requirements to be classified as a
"well-capitalized" institution for regulatory purposes.
J.P. Morgan Securities LLC served as capital advisor to the
Company on its capital plan submission and TARP repayment
application.
FORWARD-LOOKING STATEMENTS
Statements made in this press release, other than statements of
historical fact, are forward-looking statements within the meaning
of the applicable provisions of the Private Securities Litigation
Reform Act of 1995 regarding management's beliefs, projections, and
assumptions concerning future results and events. Forward-looking
statements are based on estimates, beliefs, projections, and
assumptions of management and are not guarantees of future
performance. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from our historical experience and our present
expectations or projections. Some of these risks are described in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2012 (Item 1A in
particular), other reports filed with the Securities and Exchange
Commission ("SEC"), and other filings the Company makes with the
SEC from time to time. The Company has no intention and undertakes
no obligation to update any forward-looking statement or to
publicly announce any revision of any forward-looking statement to
reflect future developments or events, except as required by
law.
SOURCE Cathay General Bancorp